The Real Effects of Universal Banking: Does Access to the Public Debt Market Matter?
| Autor: | Stefano Colonnello |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
Settore SECS-P/11 - Economia degli Intermediari Finanziari
Economics and Econometrics media_common.quotation_subject Financial system Settore SECS-P/02 - Politica Economica Settore SECS-P/06 - Economia Applicata Investment banking Settore SECS-P/09 - Finanza Aziendale Transactional leadership Accounting Debt 0502 economics and business Investment Policy Settore SECS-P/01 - Economia Politica Financial services media_common 040101 forestry 050208 finance business.industry Universal Banking Relationship Banking Banking Deregulation Investment Policy 05 social sciences Universal Banking Relationship Banking 04 agricultural and veterinary sciences Investment (macroeconomics) Shock (economics) 0401 agriculture forestry and fisheries Bond market Banking Deregulation business Finance Underwriting |
| Zdroj: | Journal of Financial Services Research. 61:77-110 |
| ISSN: | 1573-0735 0920-8550 |
| DOI: | 10.1007/s10693-020-00340-x |
| Popis: | I analyze the impact of the formation of universal banks on corporate investment by looking at the gradual dismantling of the Glass-Steagall Act’s separation between commercial and investment banking. Using a sample of US firms and their relationship banks, I show that firms curtail debt issuance and investment after positive shocks to the underwriting capacity of their main bank. This result is driven by unrated firms and is strongest immediately after a shock. These findings suggest that universal banks may pay more attention to large firms providing more underwriting opportunities while exacerbating financial constraints of opaque firms, in line with a shift to a banking model based on transactional lending. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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